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Walmart is an American multinational retail corporation that runs chains of large discount department

stores.
Wal-Mart's business model is based on a low price strategy

During the 1970’s retail stores like Kmart was way larger than Walmart and They had a strict policy of
promoting from within ( they did not hire specialist for diff tasks from outside). However, Walmart
strategy to outsource distribution and supply chain issues to experts helped surpass Kmart and gained
success.

Retail industry haru ma chai they have a strong logistics mgmt. so It is also considered as one of the 9 th
wonders of the world, in terms of logistics and distribution systems.

Walmart operates more than 11,700 stores under 59 company names, with 2.3 million employees in 28
countries around the world.
Logistics management

The company has 158 distribution centres worldwide.


The distribution centers are serviced by more than 3,500 trucks which are owned by the company itself.
The truck fleet owned by Wal-Mart replenish stock in 2 days and shipping cost was reduced to 3 %.
- in many stores products are replenished multiple times in a single day itself therefore transportation play
very vital role in making the products accessible in the store and thereby satisfy the customers. Truck
drivers delivers the products from the distribution centers in the afternoon and evening and are unloaded at
the stores at night.

and they have a lot of trucks delivering merchandise to stores and when they return back to the distribution
centre, they would return empty. So to make this more efficient and to lower costs, they decided to stop
the trucks at the suppliers and bring it to the distribution centres. This experiment is called back hauling.
And today their trucks deliver about 50% of the inbound merchandise. They were the first retailers to
develop a comprehensive back haul operation. This program has helped Walmart with millions of dollars’
savings and countless hours of saving in the movement of merchandise.

Since ever day low price was a major part of customer satisfaction strategy, logistics was a logical expense
category. They realised that is t all will be at alcohol dear foundation you push on the machineond the
money saving aspect, this was another way to improve service to the stores and a diff way to separate
themselves from the competition.

To make the distribution process more efficient, Walmart started to use a logistic technique called cross
docking. It means the direct transfer of products from inbound or outbound truck trailers without the need
for extra storage, by unloading items from an incoming truck and loading these materials directly into
outbound trucks with no storage in between. Cross-docking keeps inventory and transportation costs
down, , and eliminates inefficiencies so this strategy has reduced Walmart’s costs significantly, allowing
the company to pass those savings on to their customers with highly competitive pricing

Walmart also has an Express Delivery, that will deliver more items from the store to customers’ doors
faster than ever. This service allows customers to order more than 160,000- (160 thousand) items from the
company’s food, consumables, and merchandise. Their mission is to serve customers no matter what the
condition may be. “Whether it be a last-minute ingredient, medicine when a fever hits, or what ever the
case may be, time matters so Express is a solve for that.” So also taking that into account, they are also
doing this express delivery during this pandemics and they have many neighbourhood stores, stores that
are open 24/7 . these stores make it possible for the customers to easily access their stores for product
purchas. So these servies, delivery modes has helped Walmart keep up the customer satisfaction and
loyalty.

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